FMCG firms shift ad spends to influencer marketing, says Duff & Phelps report

New Delhi: Not just sales but even marketing promotions for fast moving consumer goods (FMCG) firms are gradually shifting towards digital as they increasingly focus on employing social media influencers in their campaigns. Consumer devotion to digital devices during the pandemic has supercharged the influencer industry. During lockdown, two-thirds of FMCG companies globally either maintained their influencer spending at pre-covid-19 levels or increased it slightly, while nearly a fifth (19%) upped it significantly, stated a report by advisory firm Duff & Phelps and and its division Kroll.

According to the findings, by 2021, nearly half of FMCG companies (46%) are expected to spend 31-50% of their total marketing budget on influencers—up one-fifth compared to the average spend between 2018-2020—while nearly one in 10 (8%) will spend more than 70%.

The Face Value report highlights results of a survey of over 900 marketing and brand managers within the FMCG sector across nine global markets, excluding India.